The Indian stock market, encompassing the BSE Sensex and NSE Nifty, experienced a notable recovery on January 12, 2026, closing in positive territory after a period of decline. This rebound marked the end of a five-day losing streak for the major indices. The Sensex concluded the day with a gain of 302 points, settling at 83,878.17, while the Nifty closed at 25,790.25, up by 106.95 points.. The market displayed significant volatility throughout the session, having opened lower and extended losses in the early trade. The Nifty touched an intraday low of 25,473.40, and the Sensex briefly dipped below the 83,000 mark. However, a strong mid-day recovery was observed, largely influenced by positive developments regarding potential trade talks between India and the United States. Reports indicating that the new US Ambassador to India, Sergio Gor, suggested ongoing engagement and scheduled future discussions significantly improved market sentiment.. Bargain hunting played a crucial role in driving the market upwards, particularly in sectors like energy, banking, and metals. These sectors witnessed buying interest, contributing to the overall gains. Conversely, IT and financial stocks experienced selling pressure, with companies like Infosys and Bajaj Finance featuring among the top losers.. Broader market indices, such as the BSE Midcap and Smallcap indices, continued to underperform, indicating a selective market trend. Factors such as persistent foreign fund outflows and ongoing geopolitical tensions, including concerns over US tariffs and global trade uncertainties, also played a role in capping sharper gains, despite the late-day rebound.. The upcoming release of December's retail inflation data and the Union Budget presentation in February were also noted as key events for investors to monitor..